Advertise Here
Icon

Directory

IconAccounting & Tax
IconAccreditation Bodies
IconActuaries
IconAssociations and Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCompany Secretarial Services
IconCompare Medical Scheme Benefits
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconEmergency Medical Rescue
IconExpatriate Cover
IconFAIS
IconHealthcare Consultants
IconHuman Resources
IconInformation Technology and Software Partners
IconLegal
IconManaged Healthcare Service Providers
IconMedical Aid Administrators
IconMedical Aid Schemes
IconMedical Schemes Trustees Liability Insurance
IconMedical Service Providers
IconOmbud
IconPolicy Administration
IconPublications
IconRegulatory Authorities
IconSurveys & Research
IconTraining Courses & Workshops
IconWellness Programs
Image
  Subscribe To »

Being prepared has never been more important for organisations

Published

2009

Tue

19

May

Company Listing: Ovations »
 

Government’s new planning commission shows good foresight

 

Private and public sector organizations, of varying sizes and across all spheres of activity, need to be effectively prepared for a wide range of possible eventualities rather than trying to predict particular outcomes.

 

This is the view of Mark Tippins, principle consultant at Johannesburg-based business transformation consultancy, Ovations.

 

 “It is heartening to note, therefore, that the South African government has introduced a new portfolio that falls under former Finance Minister Trevor Manuel in the Presidency, namely the National Planning Commission.”

 

“Essentially, the government appears to be implementing a structure that could lend itself to implementing Enterprise Risk Management. The holistic view across its myriad ministries, departments and agencies will enable more proactive integrated risk management into the future.”

 

A vital principle of effective risk management, says Tippins, is being able to have a view across an entire enterprise, whether its prime function is to deliver government services to citizens and taxpayers, or private sector goods and services to consumers.

 

“Unfortunately, in South Africa and around the world, not enough attention has been paid to scenario planning and enterprise risk management and the consequences of this negligence and lack of foresight are currently being worked through the system.

The big questions are how long this process will take, and what is the full extent of the casualty list that continues to grow on a daily basis,” he says.

 

Prepare for best and worst case scenarios

 

Tippins believes it is hugely important for organisations to identify their strategic dependency on factors that are external to their own operations – such as the supply of electricity – and then to work out how critical these factors are and what can be done to limit the fallout that may occur at some time in the future. It is also critical for organisations to prepare for best and worst case scenarios so that they are not merely in reactive mode when eventualities take place.

 

“Right now it would be valuable for strategies to be developed for two particular possibilities: the first one is the possibility that the global economic downturn brought about by the credit crunch will continue for several years; the second one is the possibility that an economic turnaround is around the corner,” he adds.

 

“Organisations that are best prepared for both potential scenarios are far more likely to survive and even thrive than those that simply react to changing realities.”

 

Tippins says it is also vital that preparations and strategies for future eventualities are not one-way bets on absolute outcomes as this is contrary to what risk management is inherently about in a world where volatility and uncertainty have become the norm.

 

“True risk management means having a transparent and clear view across an enterprise without holes and gaps or areas of fuzzy visibility which can lead to problems down the road; there has to be an effective organisational focus. The increasing accountability of senior management to manage organisational risk requires a holistic organisational insight into risks,” he adds.

 

Understanding risk can bring competitive advantage

 

Significantly, Tippins says organisations that fully understand their risk factors are more likely to benefit from future opportunities than peers and competitors that don’t.

 

“This can be used as a form of competitive advantage by organisations that take the time and effort to research and understand their risk factors, their business drivers, their markets, their environment and their competitors. There is no crystal ball-gazing involved, merely a carefully orchestrated case of being prepared for the future and what it may bring,” he says.

 

Another extremely important consideration in modern-day risk management, stresses Tippins, is the fact that it requires intellectual capital for optimal results– it cannot simply be left to a software programme to run and manage.  Appropriate management skills are needed to understand all the influencing factors and to make the necessary strategic decisions.

 
Source: Macmillan Communications
 
« Back to previous page Print this page » |
 

Breaking News »

Lloyd’s presents solutions for global industry and government partnerships

Lloyd’s presents solutions for global industry and government partnerships to fast-track societal and economic COVID-19 recovery Open-source frameworks provide blueprint for better protecting society ...
Read More »

  

Insurance Gateway Launches Virtual Offices

Insurance Gateway developed a new way of connecting brokers to their clients. This new platform will launch 1 July 2020 and I would like to invite you to have a look. To view our offices please click the link below ...
Read More »

  

Norton Rose Fulbright’s Insurance Comic Book

It is never fun having to reject a claim but we have found a fun way to learn how to do it fairly. As the brainchild of who else but Donald Dinnie, director at global law firm Norton Rose Fulbright, for ...
Read More »

  

SAIA Appoints Ms Pamela Ramagaga as General Manager: Insurance Risks

It is with great pleasure to announce to you that the South African Insurance Association (SAIA) has appointed Ms Pamela Ramagaga to the position of General Manager: Insurance Risks effective 1 June 2020. Ms ...
Read More »

 

More News »

Image

Investment »

Image

Life »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Advertise Here

From The Glossary »

Icon

Hedge:

Protect against the risks arising from potential movements in share prices, interest rates or other variables. A transaction in which an investor seeks to protect a position or anticipated position in the spot market by using an opposite position in related instruments such as derivatives. A perfect hedge is one that eliminates the possibility of future gain or loss. The futures and options markets provide the opportunity to hedge against adverse ...
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2020. All Rights Reserved.